Elon Musk denies AI startup has raised $500M of $1B goal

 

Billionaire Elon Musk denied a report that his artificial intelligence (AI) company, xAI, has secured commitments to put it halfway toward a $1 billion investment goal.

This is simply not accurate," Musk wrote on X, formerly Twitter, in response to a user’s post on the platform citing a report from Bloomberg News. 

Bloomberg had reported that xAI is discussing a valuation of $15 billion to $20 billion, according to people familiar with the matter, although those terms could change in the coming weeks. 

According to the report, Musk and investors are planning to finalize investment terms in the next few weeks and some parties are evaluating whether they can get computing power in addition to, or in some cases instead of, xAI equity shares.

In December, xAI filed a document with the Securities and Exchange Commission (SEC) that indicated it was looking to raise $1 billion through an equity offering and over $134 million had already been sold. 

That document indicated xAi "has entered into a binding and enforceable agreement for the purchase and sale" of the approximately $865 million that remained to be sold.